FEBRUARY 22 2017

And welcome to issue 938 of Exchange Invest Daily which corresponds to the Porsche 938, the type number given to the right hand drive version of the delectable 924 GT of which only 75 were made for British and Maltese roads (amongst other jurisdictions).

In Today’s Exchange Invest

More remedies required than merely a slapdash sale of Clearnet (to its largest customer) for DB1-LSE apparently as British government lives down to its reputation for not understanding finance. FXCM plan to retain discredited CEO as interim boss / advisor following FXCM defenestration in a move which surely must bring out a red card from a listing authority?

Meanwhile NASDAQ has signed a new technology agreement with Borse Dubai.

DB1 & LSE Set To Offer More Concessions To Secure Merger
Financial Times
UK Minister Plays Down German Claim To Stock Exchange “Crown Jewels”
Reuters
Germany emerges as main concern for Merger of Equal Desperation As UK Gov Appears Apathetic
CityAM

PLY: Good scoop by the Bugle using their Brussels house newspaper insider links. So far it seems the EU antitrust officials do appreciate this egregious monopoly plan – but to what extent? Will another slicing of the cake be enough to persuade them? I sincerely hope not. The UK government (a broadly socialist construct under Mrs May) and the British Labour opposition (a broadly Marxist construct under Comrade Corbyn) both dodged the merger of equal destruction in the UK Parliament yesterday. The Hansard transcript makes for pretty revealing evidence of the pure ignorance of free markets amongst British members of parliament.

US Said To Rekindle Iran Sanctions Probe Of Deutsche Boerse Unit
Bloomberg

PLY: While I have to admit my trust in DB1 management is at an all time low (and declining by the day), the situation here alas suggests that the foreigner bashing mentality of the Obama regime is still in vogue from New York at least.

The EU Mustn’t Shoot Itself In The Foot – Euro Clearing Thrives In London
City AM

“EU leaders should heed the warnings. It may be necessary to appear tough on the UK – especially during election season – but vandalising Europe’s economic prospects is no way to preserve its political union.”

PLY: Amen…albeit never believe the EU is either rational nor that it will not choose the “lose lose” option, particularly when it comes to business matters. For that reason those of us like me who once supported the blob, have abandoned it to its fate.

Greece Plans Trading Exchange To Help Reform Power Market
Reuters

The country’s market operator (LAGIE) and the Athens Stock Exchange agreed last week to jointly help set up the exchange.

PLY: There is a significant dose of the surreal around this announcement. Following prosecution by the CFTC, and despite being found “engaging in fraudulent activities” the banned managers have stepped down from the board but CEO Drew Niv, having resigned as Chairman and a board member will remain in the interim while a CEO replacement is found and still thereafter he is expected “to serve as an advisor to the newly appointed successor to assure an orderly transition.”

This is utterly GUBU. The CFTC rightly defenestrated an enterprise which was behaving in a patently indefensible manner yet the CEO is still in the building? Somebody in the listing authority surely has to consider this as it damages the parish. Frankly, if they had announced a member of the Corleone family incarcerated within the NY prison system had been added to the board of FXCM, it would have upgraded the sleazy reputation of this discredited enterprise. Meanwhile changing the name to GBL is an amusing aside – we now have a “Global Brokerage” which is banned in the world’s largest economy.

Regulators Urged To Close European Share Trading Loophole
Financial Times

PLY: Surmising the risks to the market from a(nother) faux pas in MIFID II. Rainer Riess, secretary-general of FESE rightly notes:: “Exchanges, politicians and regulators see it as a potential loophole and investors will be the ones that get hurt by it.’’

PLY: The Yangon SE is being pilloried for its perceived failure after a year when surely the scale of transition in the country is going to take significantly longer. New markets in nations ravaged by the evils of Communism are difficult to create.

Special Section: FTI, NSEL, India at the Crossroads

Sebi Issues Fresh Notices To 20 Entities In NSEL Scam
Economic Times

Technology

Nasdaq And Borse Dubai Sign Landmark Market Technology Deal
Nasdaq

PLY: Good addition/extension for NASDAQ.

BT Links Up The Five Biggest Foreign Exchange Markets In The World Via New BT Radianz FX Express
MondoVisione

Euronext Launches Europe’s First Index Dedicated To Family Businesses – Euronext® Family Business Index – Launch Of Europe’s First Index Dedicated To Raising Family Business Profiles With Investors
MondoVisione

PLY: Nice idea and worth doing but it also shows everything wrong with European capitalism – lots of dynastic family businesses often where the family retains control through shareholder structures only slightly less dubious than say Snapchat?